The Chinese University of Hong Kong Department of Finance Term 2, 2023 – 2024 FINA 3030A,B Management of Financial Institute Professor Nai Pan Tang (NP) Office : CYT 1208 Hours : TBD Telephone : 3943-7761 E-mail : nptang@cuhk.edu.hk Course Objective and Scope: We study the management of financial institutes (FI) including commercial and investment banks, insurance company and asset management with focus on banks. We start from the terrain of FI’s activities include lending/deposit, and participating in financial markets such as foreign exchange, money market, equity, bonds, derivatives etc. Then we will discuss FI’s internal management – corporate governance, financial and risk management, and regulatory controls. We will also look at the roles that banks play in the government’s execution of monetary and fiscal policies. Examples are drawn in USA, China and HK. Required Text : Financial Markets and Institutions, by Saunders, Cornett, and Erhemjamts, 8th edition (International Edition), (McGraw-Hill) 2022 Reference : Financial Institutions Management (A Risk Management Approach), by Saunders, Cornett, and Erhemjamts, 11th edition (International Edition), (McGraw-Hill) 2024 Grading Policy : The overall course grade will be determined by the following weighing scheme: Individual Assignments Group Project (group size: max of 5 ppl) Midterm Examination Final Examination : : : : 15% 15% 30% 40% N.B. Final examination is not cumulative, but the material is built upon the concepts covered in the midterm. Course Outline The following topics will be discussed in this course. The related chapters in the text are referenced. This list is not exhaustive, additional reference will be provided in the course. Topic Related Chapters 1 Introduction and Overview of the Financial Markets 1-4 2 Securities Markets 5 – 10 3 Commercial Banks 11 - 12 4 Risk Management in Banks 20 - 25 5 Regulation of Banks, Central Bank, BASEL 14, * 6 Role of FI in the execution of Monetary and Fiscal Policy * 7 Other Financial Institutions 15 - 17 * other reference to be added Honesty in Academic Works CUHK has adopted a policy of zero tolerance on cheating in examinations and plagiarism. Per University guidelines, teachers are required to report all cases of suspected plagiarism or cheating in examination to the Graduate School Disciplinary Committee for handling. For full details of the disciplinary guidelines and procedures, please refer to Section 6 of “Honesty in Academic Work: A Guide for Students and Teachers” (“The Guidelines”) at http://www.cuhk.edu.hk/policy/academichonesty/index.htm. Electronic Submission of Assignments via VeriGuide Current University policy requires that all student assignments that are computer-generated and principally text-based should be submitted via VeriGuide. For details, please refer to http://www.cuhk.edu.hk/veriguide. Use of Electronic Devices during Class A positive learning environment requires active attention, participation and respect for fellow students and the teacher. As such, no electronic devices, including mobile phones, smart phones, tablets, or laptops, are to be used during class unless the professor specifically authorizes their use for a class-related purpose. Violating this policy will result in a substantial penalty to your class participation grade. Late-drop guidelines for UG courses 1. As a general principle, late drop will normally not be considered except for unforeseen reasons. 2. Proof of strong evidence is needed for late drop, especially after the middle of the academic term (Nov/Dec for Fall term and March/Apr for Spring term). For example, medical certificate will be needed for health-related reasons. 3. Late drop is unlikely to be approved in the last month of the academic term, except for extenuating circumstances. 4. When submitting late drop applications, students should indicate whether their late drop applications involve other courses as well. Late drop for multiple courses merits stronger considerations for approval. Grade Descriptors Grade Overall Course A/AOutstanding performance on all learning outcomes. B+ / B / Substantial performance on all learning outcomes, OR high performance on some Blearning outcomes which compensates for less satisfactory performance on others, resulting in overall substantial performance. C+ / C / Satisfactory performance on the majority of learning outcomes, possibly with a Cfew weaknesses. D+/D Barely satisfactory performance on a number of learning Unsatisfactory performance on a number of learning outcomes, OR failure to F meet specified assessment requirements.
